Boc Hong Kong (holdings) Limited · HKEX:2388
Boc Hong Kong (holdings) — FY2013 Earnings Presentation
26 slides from Boc Hong Kong (holdings)'s earnings presentation, Mar 26, 2014
Slide 1: Exploring New Frontiers for Greater Opportunities: 2013 Annual Results
Exploring New Frontiers for Greater Opportunities 2013 Annual Results 2014.03.26
Slide 2: Forward-Looking Statement Disclaimer
Forward-Looking Statement Disclaimer This presentation and subsequent discussions may contain forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward- looking terminology such as believe, expect, anticipate, estimate, plan, proj
Slide 3: Management Team
Management Team Mr Gary He Vice Chairman & Chief Executive Mr Gao Yingxin Executive Director & Deputy Chief Executive Mr Zhuo Chengwen Chief Financial Officer Mr Jason Yeung Deputy Chief Executive Mr Huang Hong Deputy Chief Executive 2
Slide 4: Agenda
Agenda Key Performance Highlights Financial Results Outlook and Strategy 3
Slide 5: Key Performance Highlights
Key Performance Highlights Cp ER a rs (42 AR) APR AB) BOC HONG KONG (HOLDINGS) LIMITED
Slide 6: Operating Environment
Operating Environment Global economic recovery continued on a modest growth trajectory Increased market volatility, sluggish property transactions and keen competition Basel III Accord came into effect Expanding scope of cross-border RMB business opportunities 5
Slide 7: Performance Overview
Performance Overview Encouraging performance driven by core businesses Operating profit achieved new high with enhanced earnings quality Solid growth momentum on the back of more diversified platforms Prudent risk management to safeguard financial strengths Closer collaboration with BOC to c
Slide 8: Key Financial Highlights
Key Financial Highlights 2013 2012 % YoY HK$m Net operating income before impairment allowances 40,313 35,617 13.2 Operating profit before impairment allowances 28,230 24,358 15.9 Profit attributable to the equity holders 22,252 20,930 6.3 EPS (HK$) 2.105 1.980 6.3 ROE 14.37% 14.91% (0.54pp) ROA 1.2
Slide 9: Strong Financial Position
Strong Financial Position Strong Deposit Base Steady Loan Growth HK$ bn +8.0% YoY HK$ bn + 10.3% YoY 1,229 1,328 778 858 31.12.2012 31.12.2013 31.12.2012 31.12.2013 Benign Loan Quality Healthy LDR Sound Liquidity Classified or Impaired Loan-to-deposit Ratio Average Liquidity Ratio Loan Ratio 41.20%
Slide 10: Proactive Capital Management
Proactive Capital Management Capital Position Dividend Per Share Tier 1 / Core capital ratio HK$ 16.80% 15.80% 1.238 1.010 12.31% 10.67% 31.12.2012 31.12.2013 2012 2013 Basel II Basel III More More stringent stringent capital capital requirements requirements in in coming coming years years
Slide 11: Financial Results
Financial Results Cp ER a rs (42 AR) APR AB) BOC HONG KONG (HOLDINGS) LIMITED
Slide 12: Condensed Income Statement
Condensed Income Statement Commendable growth in core income and profits 2013 2012 % YoY HK$ m Net interest income 27,916 24,708 13.0 Net fee and commission income 8,965 7,763 15.5 Other operating income 3,432 3,146 9.1 Net operating income before impairment allowances 40,313 35,617 13.2 Net charge
Slide 13: Net Interest Income
Net Interest Income Solid net interest income growth on higher AIEA and NIM expansion 2013 2012 % YoY HK$ m Interest income 39,379 35,413 11.2 Interest expense 11,463 10,705 7.1 Net interest income 27,916 24,708 13.0 Average interest earning assets (AIEA) 1,657,215 1,542,565 7.4 Net interest margin
Slide 14: Non-interest Income
Non-interest Income Broad-based growth in net fee and commission income Other operating income increased driven by the insurance segment HK$ m 2013 2012 % YoY Net fee and commission income 8,965 7,763 15.5 Fee and commission income Credit cards business 3,516 3,161 11.2 Securities brokerage 2,432 2,
Slide 15: Operating Expenses
Operating Expenses Investment for long-term business growth while ensuring operating efficiency Operating Expenses Number of Branches HK$ m +7.3% YoY 12,083 11,259 2,025 306 308 1,904 Others (269) (266) 1,663 1,493 Depreciation 1,576 31.12.2012 31.12.2013 1,456 ( ) - Branches in Hong Kong Premises a
Slide 16: Net Charge of Impairment Allowances
Net Charge of Impairment Allowances Net charge of IA impairment allowances decreased HK$ m 2013 2012 % YoY Advances to customers Net charge of allowances before recoveries - individual assessment (313) (512) (38.9) - collective assessment (705) (606) 16.3 Recoveries 288 264 9.1 Net charge of loan im
Slide 17: Loan Quality
Loan Quality Loan quality remained sound Classified or Impaired Loans HK$ bn +1.31 -0.04 -0.56 -0.33 2.05 2.43 31.12.2012 Downgrade Upgrade Collection Write-off 31.12.2013 16
Slide 18: Condensed Balance Sheet
Condensed Balance Sheet Proactive asset and liability management to drive sustainable growth and profitability HK$ m 31.12.2013 31.12.2012 % YoY Cash and balances with banks and other financial institutions 353,741 198,748 78.0 Placements with banks and other financial institutions 46,694 66,025 (29
Slide 19: Customer Deposits
Customer Deposits Flexible deposit strategy and effective cost control HK$ m 31.12.2013 31.12.2012 % YoY Demand deposits and current accounts 104,784 97,295 7.7 Saving deposits 636,137 603,565 5.4 Time, call and notice deposits 583,227 525,430 11.0 Structured deposits 3,832 2,841 34.9 Total deposits
Slide 20: Advances to Customers
Advances to Customers Sustained healthy loan growth with conscious risk control HK$ m 31.12.2013 31.12.2012 % YoY Loans for use in HK - corporate 267,632 252,877 5.8 Loans for use in HK - individual 240,339 227,876 5.5 Residential mortgages* 190,031 186,601 1.8 Credit card advances 12,223 11,534 6.0
Slide 21: Securities Investments
Securities Investments Optimised portfolio mix to capture market opportunities HK$ m 31.12.2013 31.12.2012 % YoY Sovereign 73,344 178,520 (58.9) Public Sector 46,601 41,458 12.4 Corporate entities 93,118 64,959 43.3 Banks and other FIs 271,150 246,759 9.9 Total 484,213 531,696 (8.9) Credit rating di
Slide 22: Operating Income by Segments
Operating Income by Segments HK$ m 35,617 40,313 Personal: Residential mortgages maintained market 1,404 leadership. Broad-based 843 growth in investment & 9,497 insurance businesses 9,625 Corporate: Quality loan 15,842 growth with improved loan 13,572 pricing Treasury: Proactive investment st
Slide 23: Mainland Business
Mainland Business Promising growth driven by optimised assets and liabilities mix Operating Income Operating Expenses HK$ m + 28.5% YoY HK$ m + 28.4% YoY 2,281 1,394 1,775 1,086 2012 2013 2012 2013 Deposits from Customers Gross Advances to Customers HK$ m + 16.0% YoY HK$ m + 12.8% YoY 59,430 68,912
Slide 24: Outlook and Strategy
Outlook and Strategy Cp ER a rs (42 AR) APR AB) BOC HONG KONG (HOLDINGS) LIMITED
Slide 25: Outlook and Strategy
Outlook and Strategy Sustainable growth strategy to drive profitability of core businesses Build on diversified platforms, product innovation and channel establishment to grasp emerging opportunities Leverage our strong RMB franchise to further solidify market leadership Deepen and extend coll
Slide 26: Exploring New Frontiers for Greater Opportunities: 2013 Annual Results
Exploring New Frontiers for Greater Opportunities 2013 Annual Results 2014.03.26
BOC Hong Kong (Holdings) — FY2013 Earnings Presentation on 6ix